Ten years of contactless payment: a bird’s eye view
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This year marks the tenth anniversary of contactless payment in the Netherlands. A milestone that highlights the rapid pace of technological progress and the wide acceptance of this means of payment. With the number of contactless payments soaring to 100 million in the two years, the Dutch were exceptionally quick to embrace this technology. Annerie Vreugdenhil, Chief Commercial Officer Personal & Business Banking bij ABN AMRO: ‘It’s remarkable for a technological innovation to meet such wide acceptance. We now process around 2 million transactions per day, 85% of which are contactless. We’re going to keep on innovating to offer our clients the best experience."
The transition to digital payment methods started in 2014, when contactless payment became possible in more and more places in the Netherlands. In that year, one in six point-of-sale terminals offered it, and by year-end 2015, all 5.2 million ABN AMRO clients had contactless payment-enabled debit cards. A crucial factor in the penetration of this technology.
Innovation marched on with the launch of Tikkie in June 2016, enabling payment requests through WhatsApp. In 2018, ABN AMRO introduced passive wearables such as watches, and by September of that same year, contactless payment had become more popular than traditional PIN transactions. A recent survey by the Dutch central bank (DNB) showed that contactless payment is now preferred by the majority of people of all ages in the Netherlands. And whereas in 2016 two out of three young adults indicated that they did not want to make contactless payments with a mobile phone, today seven in ten 18 to 35-year-olds say they no longer pay with a physical debit card.
Led by Annerie Vreugdenhil, ABN AMRO continues to invest in the further digitalisation of banking. She stresses how the bank is embracing the payment revolution as part of its ongoing digitalisation drive, which enables clients to manage their banking affairs online whenever and wherever it suits them. ABN AMRO’s service offering can now be accessed almost entirely remotely, a significant transition from the banking experience we once knew.
“Thanks to digitalisation, we can leverage the talents of our advisers. While in the past we needed many of our employees to process transactions, we can now reallocate them towards personally supporting our clients,” says Vreugdenhil. This has made the bank’s service not only more efficient but also more personal. For example, ABN AMRO now has 200 Help with Banking advisers offering support to clients who haven’t yet acquired the digital skills they need. Vreugdenhil explains, “We’re very much aware of our role in society, and we’re also here for less digitally skilled clients. That’s why we’ve doubled the number of Help with Banking advisers this year.”
Timeline of the payment revolution: in 10 years contactless has become the new standard
2014 | January | Contactless payment possible at Dutch railway stations |
2014 | December | Newspapers report on advice to wrap contactless payment cards in aluminium foil |
2014 | December | Contactless payment grows by over 40% a month on average based on number of contactless transactions in the Netherlands |
2014 | December | Over 2 million contactless payments in the final month of 2014 |
2014 | December | Contactless payment possible at 1 in 6 point-of-sale terminals |
2014 | December | 8.3 million contactless payments in 2014 |
2015 | January | Chipknip is discontinued |
2015 | November | 100 millionth contactless payment in Voorburg |
2015 | December | All 5.2 million ABN AMRO clients have a contactless payment enabled debit card |
2016 | February | Arrival of Tikkie |
2016 | March | 2 out of 3 young adults indicate they do not want to make contactless payments with a mobile phone |
2016 | March | 15 million contactless payment-enabled debit cards in circulation |
2016 | April | Android mobile phones enabled for contactless payment |
2016 | April | 38% of POS terminals enabled for contactless payment |
2016 | June | ABN AMRO launches payment through WhatsApp - Tikkie |
2016 | June | Bunq launches contactless payment via a QR code |
2016 | September | More than one in five PIN transactions is contactless |
2016 | September | 65 million contactless payment transactions in a single month |
2016 | December | PIN payments more popular than cash |
2017 | August | Charities start collecting funds with a mobile POS terminal |
2018 | February | ABN introduces payment with passive wearables including rings, watches and key fobs |
2018 | September | Contactless payment more popular than traditional PIN transactions |
2018 | September | Supermarket chain Albert Heijn allows cardless payment |
2018 | October | ABN AMRO, Rabobank and Mastercard launch Garmin Pay |
2019 | June | Contactless payment for iOS with Apple Pay for ING account holders |
2019 | October | Apple pay available for ABN AMRO account holders |
2020 | January | Decision to phase out cheques as a means of payment (as of 1-1-2021) |
2020 | March | Limit for contactless payment (without PIN) temporarily raised in connection with Covid-19 |
2020 | April | Only 15% of POS payments in cash due to Covid-19 pandemic |
2021 | May | Contactless payment available for Android with Google Pay |
2021 | September | Contactless cash withdrawal enabled |
2021 | December | Over 100 million Tikkie payments in 2021 |
2022 | June | Banking on mobile phone more popular than on computer |
2022 | December | 130 million Tikkie payments in 2022 |
2022 | December | 82% of people in the Netherlands prefer contactless payment at POS terminal |
2023 | January | DNB study shows contactless payment preferred by 20 surveyed focus groups |
2023 | February | Train travellers can check in with debit card throughout the Netherlands |
2023 | April | ABN AMRO discontinues contactless payment with passive wearables |
2023 | June | Netherlands number 1 in contactless payment in public transport |
2023 | August | iPhone enabled to function as POS terminal in Netherlands |
2023 | November | Seven in ten 18 to 35-year-olds no longer pay with physical debit card |
2023 | November | 35th anniversary of PIN payments |
2023 | December | ABN AMRO clients use alternatives to debit card in 35% of PIN transactions |
2023 | December | 25 billion euros paid through Tikkie since introduction |
2024 | January | Share of contactless payment in all POS payments rises to 91.4% |